Mortgage Rescue Scheme was formed in 2005 to provide caring landlords for the growing number of people who would otherwise have lost their homes to repossession. Starting with a small group of landlords, we helped our first client in May 2006 and they are still tenants or are in the process of buying back.

The name Mortgage Rescue Scheme was chosen as such schemes were proposed in the last Housing Act.  All councils discussed implementing such schemes, but regrettably had no funding.  One or two lenders attempted to offer a scheme with limited success.  Scotland has a government funded Mortgage To Rent Scheme  but it is rather inflexible and has only helped very limited numbers.   There is talk of the government funding a mortgage rescue scheme but it remains to be seen if there will be sufficient interest.  Homeowners have not really been a priority for government.

Mortgage Rescue Scheme operates a network of committed landlordswho help you when who wish to become tenants of your own homes.  We insist on proper accreditation.  All landlords are required to have membership of the National Landlords Association or similar landlord organisation, which keeps them informed of all issues to do with landlords and tenants.

Our landlords work to a strict code of ethics. (see below).Your contracted term  will be managed by Mortgage Rescue Scheme, which liaises with you and your landlord.  We will offer you guidance with unsecured debt isssues, Housing benefit issues and other issues with your tenancy, although you have to deal with other agencies for specific advice on benefits.  Your landlord will also deal sympathetically with any issues that arise.

Landlords remain accountable to Mortgage Rescue Scheme during the initial contractual period, after which they will usually be happy to keep you as a tenant, if that is what you want and provided the there have been no issues.

MORTGAGE RESCUE SCHEME
 

CODE OF ETHICS

(a) Mortgage Rescue Scheme agrees to provide fair, simple and complete presentation of its offers.

(b) The benefits, obligations, variables and limitations are clearly set out in the scheme’s literature, including:

· all costs which the applicant has to pay, if required

· the applicant’s position on moving out of the scheme

· the applicant’s position on staying in the scheme as a tenant

· the applicant’s position on moving within the scheme

· the effect of changes in house values

· the option to repurchase the property including timescales and projected figures

(c) Clients are asked to sign a document stating that they have discussed and considered the options available to them, before they enter into an agreement with Mortgage Rescue Scheme.

(d) The client will always be encouraged to seek independant advice.  The client’s legal fees will be paid for by the scheme. The client’s legal work will usuallly be performed by a solicitor appointed on their behalf by Mortgage Rescue Scheme to facilitate the sale. These solicitors are familiar with the scheme and can interact in a timely manner on the client’s behalf with lenders, lenders’ solicitors, courts, bailiffs and other agencies. Clients may take independent advice if they wish.

(e) The Offer to Client clearly states the main cost to the householder’s equity, the sales price as determined by independent valuation, the terms of any buyback, the terms of the tenancy, the rental amount and the terms of both moving within the scheme and leaving the scheme.

(f) The client understands that by using, Mortgage Rescue Scheme, he changes tenure from owner to tenant but remains in his home. He must then recognise his obligations as a tenant, namely, paying his rent on time and adhering to the terms of the  Assured Shorthold Tenancy agreement. If a tenant defaults on his rent, or otherwise contravenes the terms of the tenancy agreement, despite the ongoing support offered by the scheme and the best efforts of the landlord in putting appropriate arrangements in place, he will lose the benefits of the scheme and will be subject to normal proceedings to evict.

(g) The landlord is contractually obliged to follow the requirements of the Mortgage Rescue Scheme for contracted period, after which the tenancy becomes a normal tenancy if the tenant does not exercise his buyback option. The landlord will be encouraged to offer a long-term tenancy if required. If the client leaves the scheme, the property will be sold and the client may be entitled to funds after the costs of sale are met.

(h) The client will lose a portion of  the equity available in their property throughout the process. After the contracted period the client can exercise his option to buy the property back at the pre-agreed price and thereby recoup lost equity and any accrued equity.